Kansas bill would eliminate state minimum wage, prohibit local living wage laws

Critics say proposal would create more economic insecurity

Topeka  Business lobbyists, and some lawmakers on Monday sought to repeal the state minimum wage -- already the lowest in the nation at $2.65 per hour -- and also recommended prohibiting cities from passing living wage ordinances.

Jeff Glendening, a spokesman for The Kansas Chamber, said the free market should determine wages.

"A minimum wage set by government is not needed and should be repealed," Glendening told the Senate Commerce Committee.

Ron Hein, legislative counsel for the Kansas Restaurant and Hospitality Association, said minimum wage laws often hurt those they are intended to help by causing employers to hire fewer people, or someone with more qualifications.

But labor and social justice groups said if there are any changes to the state minimum wage, it should be increased to at least the federal minimum wage of $5.15 an hour. Congress also is considering increasing the federal minimum to $7.25 an hour, which would be the first increase in 10 years.

"Let's take the high road in Kansas and relieve ourselves from the embarrassment of being the lowest minimum wage state," said Andy Sanchez, executive secretary treasurer of the Kansas AFL-CIO.

The state minimum wage applies to employees not covered by the regulations of the federal minimum wage. The U.S. Department of Labor estimates there are 19,000 Kansans earning below the federal minimum wage.

Twenty-eight states have state minimum wage rates higher than the federal minimum.

Sixteen states have set their state rate at the federal wage and five have no minimum wage; those include are Alabama, Louisiana, Mississippi, South Carolina and Tennessee.

Of states with a state minimum, only Kansas' is lower than the federal wage.

The Kansas Action Network, a coalition of social justice groups, issued a statement that said without a state minimum wage, "Kansas workers who earn less than the federal minimum will be plunged into even greater economic insecurity."

Hein also recommended that Senate Bill 71, which would repeal the state minimum wage, should also ban cities from enacting local minimum or living wage ordinances.

A Lawrence group, Grassroots Action, has proposed a measure that would require businesses in Lawrence to pay wages that would boost workers' salaries above the poverty rate. Lawrence already has an ordinance that requires companies that receive a tax abatement to pay at least $10.38 per hour.

Hein said the local ordinances are a problem for the restaurant and lodging industries.

"There are already enough differing governmental levels of laws and regulations on our industry as well as others, without having a third level of legislation in the area of minimum wage or other working conditions," he said.

Commerce co-chair Sen. Karin Brownlee, R-Olathe, said she wasn't sure what the committee would do with the proposed bill.

"I'll need to visit with the committee and see what they say," Brownlee said.

This will make no difference to anyone. The only people that make lower than minimum wage are waiters and waitresses. No business is going to cut their pay just because the state minimum wage is lower.

What's really going on is the state thinks the likes of Lawrence is going to chase business over state lines. I think so too.

Its good to see laissez-faire economics is still popular in some circles. However, history has taught the reality-based community that allowing business interests to dictate state policy and deal with their employees in an 'unfettered' manner is not just disastrous for workers, it is disastrous for the nation. Obviously balance is the key.

If big business in Kansas could be trusted to pay a fair wage to their employees and not abuse their own employees through outsourcing and suppressed wages, there would be no need for a minimum wage law. History shows that business is greedy and ends up taking advantage of their workers to improve their profit margin for those at the top that milk the company to fill the pockets of the board members of corporations.

Not all businesses do this, but most will only do the minimum that is required by the law, rather than what is right and fair towards their employees and for the good for their country and State. Therefore, there is a need for a minimum wage law to keep the State and nation from emploding from greedy business practices that seek only more money and power. If employees are not paid well so they can support their families, the economy and the State will fail because employees can't buy homes and feed their families and pay taxes for government to operate and exist.

No minimum wage and no hour limitations worked really nicely in Victorian England. I've read a lot of books about how successful those business practices were, especially in terms of the welfare of children. As well, we really need to get rid of safety regulations because the free market should determine that as well. There is no reason we should be sacrificing jobs for mere safety concerns. If someone is not willing to give up a foot, hand, or even their life for a job, then they can't want it very much.

I'm totally on board with this idea. Think of the well-trained applicants this state will attract. Think of the high-paying businesses that will follow. I also know that the Christian Work Ethic is very important to people and that many are willing to work at what a manager deems is a fair rate rather than to make enough to pay back college loans and to support their children. After all, the WORK is more important than some sinful wage. As well, few people have the desire to own material possessions or property (after all, ownership of these things reflects a degenerate moral attitude!) and so have taken personal vows of poverty despite their professional qualifications. For example, there are many attorneys and doctors who are always willing to put aside cars and homes to work for their clients for free.

If we keep on forcing businesses to pay a base salery, they will stop hiring people and the entire economy will collapse. After all, the less money in the economy, the better, because then people will not be going into businesses to buy goods and services, and if they are not patronizing these businesses, the businesses will not need to hire employees at inflated rates of pay, like the outrageous $5/hr. Giving all of the money to a few people is a sound economic model. After all, the Middle Ages worked that way and lasted for 1000 years, whereas modern Capitalism has only lasted about 150 years and is having such problems as people demanding minimum wages and health care.

Businesses and corporations know what is best for people, because they aren't people and aren't afraid of silly things like illness, children, death and comfort. It is much better to let a non-human intinty make decisions for us than to leave it to the emotional whims of humans. Why should humans be comfortable when they can work?

haha, good stuff sourpuss... if state legislators are concerned about the negative impact the current state minimum wage is having on business, they should make two considerations.

First, the federal Fair Labor Standards Act set a minimum wage for tipped employees at $2.13/hr so even if we eliminate the state minimum wage of $2.65/hr, the effect is minimal. (source is referenced below)

www.dol.gov/esa/programs/whd/state/tipped.htm

Second, (and more important for business men around kansas to consider) the negative attention brought on by the ratification of this bill will attract plenty of energetic labor organizers ready to raise hell for employers all across kansas.

I propose a constitutional amendment that would set the maximum wage for state and local government employees: the highest wage should be no more than 2.67273 times the average wage of non-government-employed citizens over age 18 in the governed area. That cap would apply to all government employees, including coaches, athletic directors, city managers, superintenandants, etc. Give them an incentive to work to improve economic conditions for everyone.

I propose a Constitutional Amenment making it illegal for any lawmaker to vote on any new law that does not apply to them and impact them directly. (E.g. they can't make others pay more - or get less - unless they too have to pay more - or get less). I also would support a Constitutional Amendment out-lawing lawmakers meeting more then every 3 years. That ought to make their infrequent lawmaking meetings (and any resulting new laws) more thought through, fair and efficient!

Posted by Bowhunter99 (anonymous) on February 12, 2007 at 1:01 p.m. (Suggest removal)

Would those 19,000 Kansans earning below the federal min wage be restaurant employees that earn 15-20% tips? The ones that never report those earnings to the IRS?

Actually, they are supposed to report their tips at the end of each shift (I waited tables for a long time). This is actually a really sad idea. It's sad to see that "only waiters and waitresses make less than minimum wage" written when as a former waitress despite tips, with that type of income, sometimes at a slow restaurant or on a slow shift, you may only make that $2.65 an hour. Not only that, but to prohibit communities from making local laws in support of mandatory living wage goes against the whole local control ideaology generally supported by the GOP, who are mostly supporters of this.

Posted by sourpuss (anonymous) on February 12, 2007 at 2:05 p.m. (Suggest removal)

No minimum wage and no hour limitations worked really nicely in Victorian England. I've read a lot of books about how successful those business practices were, especially in terms of the welfare of children. As well, we really need to get rid of safety regulations because the free market should determine that as well. There is no reason we should be sacrificing jobs for mere safety concerns. If someone is not willing to give up a foot, hand, or even their life for a job, then they can't want it very much.

I'm totally on board with this idea. Think of the well-trained applicants this state will attract. Think of the high-paying businesses that will follow. I also know that the Christian Work Ethic is very important to people and that many are willing to work at what a manager deems is a fair rate rather than to make enough to pay back college loans and to support their children. After all, the WORK is more important than some sinful wage. As well, few people have the desire to own material possessions or property (after all, ownership of these things reflects a degenerate moral attitude!) and so have taken personal vows of poverty despite their professional qualifications. For example, there are many attorneys and doctors who are always willing to put aside cars and homes to work for their clients for free.

If we keep on forcing businesses to pay a base salery, they will stop hiring people and the entire economy will collapse. After all, the less money in the economy, the better, because then people will not be going into businesses to buy goods and services, and if they are not patronizing these businesses, the businesses will not need to hire employees at inflated rates of pay, like the outrageous $5/hr. Giving all of the money to a few people is a sound economic model. After all, the Middle Ages worked that way and lasted for 1000 years, whereas modern Capitalism has only lasted about 150 years and is having such problems as people demanding minimum wages and health care.

Businesses and corporations know what is best for people, because they aren't people and aren't afraid of silly things like illness, children, death and comfort. It is much better to let a non-human intinty make decisions for us than to leave it to the emotional whims of humans. Why should humans be comfortable when they can work?

Godot, there are minimum levels of commerce and employment which require businesses to adhere to federal guidelines. Smaller businesses are exempt.

Part of the proposed federal min. wage hike is doubling that minimum gross income of a business, as well as creating lots of tax cuts for businesses. In the end, the current federal proposal will cost tax payers more (paying businesses back more than their increased labor cost) and give workers less (by taking away many more employees' eligibility for federal wage law protection).

State wage laws protect workers whose employers are exempt from federal laws, as well as possibly raising their bar above federal guidelines.

@ imastinker
"This is a different time than it was 100 years ago. If you don't treat employees well - they leave. If they leave and you can't hire new ones - you go out of business."

People working at Wal-Mart would be interested to hear this.

Also, concerning the article:

"Ron Hein, legislative counsel for the Kansas Restaurant and Hospitality Association, said minimum wage laws often hurt those they are intended to help by causing employers to hire fewer people, or someone with more qualifications."

Hiring someone with more qualifications? Gee, that would suck. What a free market approach to employment. I would hate to live in a world where the people I deal with at businesses are actually knowledgeable in their duties.

As for hiring fewer people, if quality of service suffers, the business with just have to hire more help and raise prices. Consumers will make the decision whether to go to a business with lower prices or better service. That sounds like how the free market is supposed to work.

There wouldn't be any CEOs if there weren't a whole bunch of peons on the front lines, making piddling wages and doing all the grunt work, so the CEOs can sit on their butts and rake in all that money.

I deal with China on a daily basis, and when you do the math many employees in China (at non-govt owned companies in the larger cities) make better money than our minimum wage workers. Pretty sad when young Chinese workers make more money, get paid health care, get more paid holidays and more vacation time than hard working, minimum wage earning Americans.

And for those that will instantly attack me because you'll say you can't compare China to the USA, you are very wrong. I travel there frequently for business and understand how everything works and how the people live. China is very modern and they actually have labor shortages for educated employees. It won't be long before WE are considered beneath China. Pretty sad.

It's a serious moral/philosophical question - what do you say to the guy who works hard for 40 hours a week, is always on time, works hard, and is dependable, yet still doesn't make enough money to feed, shelter, clothe, and insure himself?

-- Get an education? How, if he has no money? Should he rely on the government to provide it?

-- Get charity? Then he should be supported by others?

-- Lay down and die?

It's a serious question - what should be done about this person, making $5.15 an hour, or $206.00 a week, or $10,712.00 a year?

cool, will you join me in demanding that companies in Kansas pay their workers a decent living wage of at least $25 per hour (plus yearly cost of living adjustment)?

It's time for Kansas to set an example for the rest of the country and start DEMANDING these companies in Kansas pay their people what they're worth and to make sure their workers have DECENT health care and retirement pensions!

If these coldhearted companies don't like it they can just leave our state because we don't need their kind anyway!

Those are wonderful topics for discussion, white-mountain, but they have absolutely nothing to do with a MINIMUM wage.

minimum |&&char114&& minÉmÉm| noun ( pl. -ma |-mÉ|or -mums ) [usu. in sing. ] the least or smallest amount or quantity possible, attainable, or required : technical difficulties have been kept to a minimum | they checked passports with the minimum of fuss. ¢ the lowest or smallest amount of a varying quantity (e.g., temperature) allowed, attained, or recorded : clients with a minimum of $500,000 to invest | winter minima of -40 Â° C have been recorded. ¢ Mathematics a point at which a continuously varying quantity ceases to decrease and begins to increase; the value of a quantity at such a point. ¢ Mathematics the smallest element in a set. adjective [ attrib. ] smallest or lowest : this can be done with the minimum amount of effort. PHRASES at a (or the) minimum at the very least : we zipped along at a minimum of 55 mph. ORIGIN mid 17th cent.: from Latin, neuter of minimus 'least.'

You can't say you're in favor of the little guy if you support a MINIMUM wage of less than $25 per hour or so, which is a decent living wage in Lawrence.

Those companies have profits. We need to squeeze them for those profits because you KNOW they won't give them voluntarily. The little guy is getting scr#)ed in all this and it's time to equal things out.

If we raise the minium wage to $30 per hour, which seems reasonable, considering the wants of the average citizen, it follows that, in order to maintain the accepted chasm between the uber-privileged, like chancellors and athletic directors, and the not-so-privileged, like the rest of us, we would have to raise the wages of the uber-privilged by 300% or more.

let's hear it for $6,000,000 per year for Lew Perkins! Right on!
He deserves it!

There should be a maximum wage. Dead beat CEO's should not be allowed to make more than 2 times more than their lowest paid employee. Then he/she can either raise others wages or live like a real person. How many companies have been ripped off lately by useless CEO's who can't do anything but pad their pockets.

Let's sort this one out. It comes down to a simple argument in the end -- should there be a baseline minimum at which a company that has the resources to survive on its own be able to drive down the cost at which a human being, generally without great bargaining power, has the ability to contract his/her services to provide labor to the company for which the company can extract a profit (known as earnings) from said person's physical/mental efforts?

If you are of the philosophical bent that there should be a minimum, such that persons will not bargain themselves to the $0.01/hr mark, then you are for a minimum wage. The only question remains, what is the right dollar amount per hour that is work the American human's dignity. If you are against this proposal then you have to admit that you are willing to allow the value of a human being's hour worth of physical/mental labor to be bargained down to a $0.01/hour rate.